Halifax: little change expected

‘UK house prices fell by 0.3% in 2012 and will remain at the same level during 2013, the Halifax has said.

Property prices were 1.3% higher in December than they had been in November, with the average home valued at £163,845, it said. December’s jump comes amid signs the Bank of England’s Funding for Lending scheme is having a positive impact on the availability of mortgages.

Approvals for lending to homebuyers climbed to a 10-month high in November, while the Bank’s recent credit conditions report forecast a significant increase in the availability of finance to households and borrowers this year. The Halifax also said it expected continued “stability”, but added that the outlook for the UK economy and house prices was more unclear than usual.

This has been echoed by others although regional differences are expected. The broadly unchanged picture is an average across the UK.

In general, surveys show that London and the South East of England have seen price rises, but there have been falls elsewhere, notably in Northern Ireland.

“Overall, last year saw an even mix of monthly rises and falls as prices lacked any real direction as both demand and supply pressures remained largely unchanged during 2012,” said Martin Ellis, housing economist at the Halifax.

“We expect continuing broad stability in house prices nationally in 2013 with prices likely to end the year at levels close to where they begin”.’

Source: The Guardian

Myfanwy Neville

Partner: Property and Construction, Sustainability and ESG

T +44 (0)20 8922 9376
E Myfanwy.Neville@bkl.co.uk

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